Friday, January 25, 2008

Cramer Should Pay Rogue Traders Legal Bills

Cramer and Wall Street got what they wanted, a big rate cut but little did the Street or the FED know that it was because of a major banks unwinding of a bad trade of biblical proportions by a rogue trader. This guy looks about fourteen years old by the way. Starting about yesterday, we started hearing about how the "rogue trader" lost billions with Frances second largest bank and how it was possible that the FED was hoodwinked into the rate cut because of the unwinding. Was the FED going to change their mind after the facts came out? This was the largest cut since 1990 and I still don't feel bullish. As a matter of total fact I feel really bearish and have a really quick trigger finger on anything I do in the market. This is a miserable tape in my opinion and I still feel we test the lows soon. I have been wrong before. Just don't "buy,buy,buy"on a 24/7 basis like someone will tell you to every night. Think on your own,think outside the box and don't ever follow conventional wisdom-it will save you a fortune in the long and short run.I think 1 to 1.50% daily moves in the market will become common place going forward and we need to be prepared and ready to adapt.I think the Fed feels idiotic at this point and so they should. Will they want to spite the street for the 3/4% cut this week because of the rogue traders position hitting the market and punish us with a 25 bip cut and not 50? Either way, I think the market is in for some tough love.Hope I'm wrong. Hope everybody had a profitable week and I will be around this weekend.


Anonymous said...


Take a look at NURO. Setting up beautifully with a little breakout above $10 today. Upcoming news on tap for 2/7 - 2/10 where a determination is to be made on a coding issue they have been struggling with for some time now. A positive ruling with have this moving quickly. Also EPS set for I believe 2/5. Clear stop here at $10, so not much risk with alot of upside potential.

About Me

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.